Kingston council OKs two nonprofit housing rehab plans, but rejects city agency's bid for project (UPDATED)

KINGSTON, N.Y. -- City lawmakers have agreed to let two nonprofit agencies use city-owned property to provide first-time homebuyers with affordable housing.

But the Common Council on Tuesday refused to let the city's Office for Community Development conduct its own housing rehabilitation project on Spring Street.

The council voted 8-0 in favor of allowing Ulster YouthBuild to renovate a city-owned house at 94 Furnace St. and Habitat for Humanity to renovate at house at 182 E. Chester St. Both nonprofit agencies plan to sell the properties at an affordable price to first-time homebuyers.

Alderwoman Elisa Ball, D-Ward 6, recused herself from voting because she works for YouthBuild.

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The council rejected a rehabilitation plan for city-owned property at 139-141 Spring St.

Earlier in the day, Mayor Shayne Gallo said he would notify council President James Noble that he intends to appear at the next meeting of the council's Community Development Committee to support the agency's proposal.

Gallo described as "short-sighted" the council's rejection of the Community Development Office's proposal. He said the proposal would allow the city to have a direct role in rehabilitating a foreclosed home, improving a neighborhood and getting a property back on the tax roll.

"What it would do is facilitate first-time homebuyer purchases and ... shore up property values in neighborhoods and stabilize them," Gallo said.

Gallo said other municipalities have similar programs.

But Alderman Robert Senor, who chairs the council's Laws and Rules Committee, and council Majority Leader Thomas Hoffay said the city should not be directly involved in housing rehabilitation.

Senor, D-Ward 8, said he has seen little information on how much the Spring Street project would cost. In the past, the city has taken on rehabilitation projects and lost money on them, Senor said.

"I don't think we should be involved in the housing market," he said.

Hoffay, D-Ward 2, said the city should let organizations like Ulster YouthBuild and Habitat for Humanity, which he described as "first-class" agencies, handle such projects. Hoffay said if the city were to get into the business of housing rehabilitations, it would be competing with those agencies.

He said both agencies have excellent track records and the expertise needed to do good work.

Gallo said that while those agencies do a good job, the city could participate and get more housing restored using an in-house rehabilitation expert.

City Comptroller John Tuey said taxes owed on 94 Furnace total $24,557.29 and that the property is assessed at $50,000.

Taxes owed on 180-182 E. Chester St. are $4,081.32, and the property is assessed at $20,400, Tuey said.